Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Inflation? Where?

By

Yo, you disinflationing me?

PrintPRINT

Today's Philly Fed report, coming in at -2.2 versus expectations of +10, was notable for the following:

Prices Paid (Input costs): 23.5 vs 30.9 last month

Prices Received: 8.1 vs 15.7 last month

Now, add this to the following data points from the last few weeks of macro data:

NY Fed survey:

Prices paid: 30.6 vs 41.6 last month.

Prices received: 2.0 vs 8.0 last month

Import price index: -1.3% m/m vs -0.4% exp.

ISM prices paid: 58.0 vs 67.5 exp.

This indicates broad-based price disinflation given the breadth of the survey data in these reports. So far it has, of course, resulted in MORE financial speculation given the moral hazard play of: "a less hawkish fed = more liquidity."

To the extent this trend continues at this pace, it remains probable that these gathering forces will too affect assets as they are affecting 'real' production goods and services.

No positions in stocks mentioned.

The informatio= n on this website solely reflects the analysis of or opinion about the perf= ormance of securities and financial markets by the writers whose articles a= ppear on the site. The views expressed by the writers are not necessarily t= he views of Minyanville Media, Inc. or members of its management. Nothing c= ontained on the website is intended to constitute a recommendation or advic= e addressed to an individual investor or category of investors to purchase,= sell or hold any security, or to take any action with respect to the prosp= ective movement of the securities markets or to solicit the purchase or sal= e of any security. Any investment decisions must be made by the reader eith= er individually or in consultation with his or her investment professional.= Minyanville writers and staff may trade or hold positions in securities th= at are discussed in articles appearing on the website. Writers of articles = are required to disclose whether they have a position in any stock or fund = discussed in an article, but are not permitted to disclose the size or dire= ction of the position. Nothing on this website is intended to solicit busin= ess of any kind for a writer's business or fund. Minyanville management= and staff as well as contributing writers will not respond to emails or ot= her communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.<= /p>

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE